Skolkovo is one of the top universities in the world and is associated with MIT. The students were in their 30s and many already had their own businesses. Others were either considering the prospects or just wanted a better understanding.

Introducing the Russian Students to Soft Skills

We knew they had seen a lot and heard a lot about hard tech in the Valley. Between the VCs and the auspicious examples of technical success, we figured they might appreciate a more natural environment and a talk on something entirely different, so we presented them with our course on “How Soft Skills Earn Hard Cash.”

We decided to take them through the three basic soft skills (Appreciation, Acknowledgement, and Communication), and how they apply to the three basic business relationships (Employees, Vendors, and Buyers).

Although soft skills are not the only thing you need to be a success, their absence can result in expensive and crippling turnover, higher costs, loss of credit, and loss of customers. In other words, there has to be a balance between tech skills and soft skills.

We were impressed with the students and their sincere interest in achieving business success. We started with what we had in common: a desire to have loyal and engaged employees, a need for extended credit and terms, and a need for ongoing and increasing business.

Even with the obvious cultural differences between our societies, business is business and people are people. How folks are treated makes a big difference in their discretionary decisions regarding your company’s products and services. And probably the most important consideration you can give others as a business person is respect for their concerns.

If they are employed by you, do you have their interests at heart?

Do you demonstrate it? For instance, can employees enhance their careers with your company? Do they get the compensation, recognition, education, security, and the time with their family they need to remain loyal?

If they are your vendor, do you treat their salespeople with respect?

Do you call in advance of a late payment with a plan to bring your account current? Do you consider a long-term contract so they can feel confident extending the terms and credit you need to grow your business?

If they are your buyer, do you service what you sell?

Do you honor your warranties? Do you provide the kind of support they need to stay with you, increase their purchases, and promote your products? Do you understand and address every level of buyer from your warehouse to your ultimate consumer so your products will move freely through the channels?

All of this really comes down to putting yourself in the other guy’s shoes. Know what they want, and get what you want by giving them what they want first. In other words, as our friend Ivan Misner likes to say, “Take off the bib and put on the apron!” Or, as we like to say, “If you are going to be a jerk, get out your wallet! It’s going to cost you more.”

These lessons are international and timeless. Anyone with a great idea that can change the world will have a much easier time doing so by practicing these soft skills. They can make the critical difference between success and failure.

When we first got into business, we thought that our product was so good, that it would sell itself (Gold Medal winners under $6). We couldn’t understand why the world wasn’t knocking out windows and kicking down doors to get to us. It cost us plenty of time, money, and anguish to finally learn and master these essential skills, which, ultimately, resulted in our major success.

We were thrilled to be able to share the practical benefits of soft skills in business with the impressive students of Skolkovo.  We wish them the best in their own businesses and hope they will return for  another visit to their “Outdoor Classroom in the Wine Country!”  Надеюсь увидеть тебя снова в ближайшее время!

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Russian Students Visit the Russian River! appeared first on The Barefoot Spirit.

For us, it’s hard to watch so many startups fail because they say they “couldn’t raise enough cash,” when, realistically, they have not yet addressed the core issue. We ask, “Did you really need all that money to start with?” At the Barefoot Startup, we believe that there are many ways to get your idea off the ground and grow your business effectively that do not require cash. One way is by being more resourceful, and yes, friendly. But you need to be genuinely sincere about your friendliness; Just acting friendly can be seen through and easily backfire!

So, what is “friendly” and how does it translate into profitable business relationships?

Here’s a clue – think about how you treat your friends. You have their best interests at heart. You demonstrate this with your actions. You would never mislead or manipulate a true friend. Think of your family members. You take a sincere interest in their lives. You know their aspirations and their challenges, and you are there to help and encourage them.

Now think about how you felt when they showed up on moving day to help you pack up your stuff, when they introduced you to that key person who helped you with your problem, or when they just listened to you when you needed a sounding board. Their interest in you and your needs made you want to treat them special, give them the benefit of the doubt, and make allowances for them.

Isn’t this what you want from your business associates? Special treatment, the benefit of the doubt, and allowances made for you are all valuable. In business, this can translate into cash. Let’s look at the 4 groups of folks most businesses have relationships with and how you can be friendly with them:

1. Employees are often seen as an expense, and therefore are an untapped resource. And yet, turn-over is the #1 hidden cost of any business. Employees are more likely to stay with you if they believe you have their best interests at heart. Demonstrate this with fair pay, time off, and an interest in them as individuals. They will be more engaged if you show them appreciation for the good work they do. They will go the extra mile if you compensate them, at least partially, on performance.
2. Vendors have the ability to extend your terms and increase your credit, but will only do so if they trust you. You will build trust by keeping them up to date on your payment status, sharing your plans for growth, and making good on your promises. When you show them your loyalty by purchasing certain items exclusively from them, they may show their appreciation by giving you breaks on warehousing, shipping, and quantity purchases. Vendors are also a wealth of information. So, treat their sales people like gold …it pays!
3. Investors are more willing to extend financing if you have demonstrated even a small positive cash flow. They want to see that you appreciate their predicament and are willing to take steps to mitigate their risk. When you demonstrate that you are being frugal and resourceful with their money, investors will be more receptive to the idea of investing more and offering you better terms.
4. Buyers require reassurance before they will carry your products and participate in your promotions. You can gain their confidence by being dependable, providing industry information, and helping them achieve their goals whether strategic, metric, or mercantile. They appreciate your kindness when you give them personalized attention and provide the help they need without being asked. They will often return your favors by opening doors previously closed to you.

When we speak at universities and technical schools, students of entrepreneurship often ask us, “What else should I be taking beside business to help my startup be a success?” We always answer, “The Liberal Arts, also known as the Humanities.” History, sociology, psychology, philosophy, literature, communications and critical thinking are great “soft skills” tools that enable you to better appreciate and communicate with the people who can make allowances for their “friend,” YOU!

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Soft Skills Can Result in Hard Cash! appeared first on The Barefoot Spirit.

Every week there’s a new story about another successful entrepreneur who has disrupted their industry and made a billion. But that’s not even half the story. The tabloids are quick to pander to your desire to see all things new and reward the game changers. It sells magazines!

The fact is that behind every one of those disrupting game-changers is a story of pushback from the buyers, tons of missionary work, and years of not being taken seriously.

And, why should they take you seriously?

Your ideas have never been tested in the marketplace. No one wants to be the first retailer to take a chance on an unproven idea. Besides, they have their tried and true products that have been regularly producing profits for them. Why should they risk losing their go-to brands, the ones they know, the ones that are already in demand?

To read the complete article, please visit The Business Journals 

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post The Trouble with Disruption appeared first on The Barefoot Spirit.

How about a fun game?

Yes, we made a game out of rejection! We called it “the No Game.”

The first thing we did was set the ground rules. And to do that, we had to discover how many “no’s” our people were getting from decisionmakers before they got that big “yes.” So, we all started keeping track. That was sort of fun to start with. It assumed there was an absolute, measurable limit – crazy as it seemed. After a while, we noticed that the average number of “no’s” before getting to “yes” was 7.

That’s right, 7! Not 9 or 4, but 7! So, we used 7 as our bassline. Then when our folks would complain that they had been shut down 3 or 4 times, we could say, “Relax, you’re not even to the average yet!” And when they complained that they were up to 15 no’s, we’d say, “Well, buck up! It’s right around the corner!”

But then we started comparing notes on how certain of our people got to “yes” sooner than others and we found out the 3 things they consistently did to come in under the average and win the No Game

1. Ask a Different Day. Amazingly, some of our people got to “yes” by simply waiting! Maybe the buyer was in a better mood the next day, the next week, or the next month. Maybe the buyer wasn’t looking for our kind of product at the time he or she was first asked. Maybe the market changed. Or maybe a product in our category was discontinued and now there was room. Something happened that required time. What if we stopped asking?
2. Ask a Different Person. Some of our people got to “yes” by asking a different person who was the decision maker that day. In the case of governmental approvals, we found this especially to be true. After our countless requests for permits and label approvals were denied, they were suddenly approved! Why? Because we got a new agent who interpreted the rules a little differently, and in our favor. Sometimes the old decisionmaker was no longer the decisionmaker. They may have been fired, transferred, or promoted. The new one said yes! One new buyer actually asked, “Why haven’t we had this brand before?” We loved her!
3. Ask a Different Way. And some of our people got to “yes” by restating the proposition in terms that finally resonated with the buyer. This is probably the greatest sales skill any entrepreneur should develop. It takes a lot more asking than telling, a lot more listening than selling. Ask about her current concerns. Find out her favorite products and why. Find out her favorite representatives and why. The answers will help you recraft and tailor your proposal to her liking. Listen for the way your proposition solves her problem.

Yes, it started as a fun game where our people could “win” by coming in under 7 “no’s.”  They would proudly announce that they beat the odds. But the “game” got extremely beneficial when everyone began to pick up on the tips and use them effectively.

The average number of “no’s” didn’t really improve, but our attitude did! We began to realize that there is no “yes” or “no.” There’s only “now” and “later.” The only one who can say “no” is you …when you stop asking!

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Make Fun out of Adversity by Playing the “No Game” appeared first on The Barefoot Spirit.

Is there some formula, procedure, or process you can just cut and paste that will protect you? Is there a failsafe way to survive the dangers of entrepreneurship? Is there just “the one thing” you need to know?  In spite of the daily hype, pandering, and outrageous claims to the contrary, the answer is a flat “No!”

After we monetized our equity in the Barefoot Wine brand, we were encouraged by colleagues to write about how we did it; specifically, how we handled the unknown. The answer, in retrospect, was a set of guiding principles; some we had previously learned and applied from day one; some we learned by asking questions of others; and some we learned the hard way. There is no “just one thing!” It is a multifaceted approach to doing business we call “the Barefoot Spirit.”

A big part of the Barefoot Spirit is the Guiding Principles for Success, GPS for short. These are critical and learnable standards, attitudes and soft skills that we used to minimize risk, prepare for the unknown, improve the quality of our decisions, and reduce our need for capital.

With the information revolution and the advance of technology, we saw a whole new generation with a whole new approach to business. We saw new platforms, and new products and services. We saw the disruption of so many old ways of doing things that in the process, we may have inadvertently thrown out some classic business principles. A big mistake!

With an accelerating failure rate, loss of investor capital, and increasing inability for startups to achieve positive cashflow, it’s finally time to bring back those classic principles. When it comes to the past, take the best and leave the rest. The best of the past is a big part of the Barefoot Spirit.

When you start a business, prepare yourself for the adventure! Just like a seasoned sea captain, you wouldn’t dare go out to sea without being prepared for the unknown. You need radar, sonar, weather satellites, charts, a GPS and a sextant to back it up.

Being the captain of your “entrepreneur-ship” is no different. It doesn’t really matter how good your idea is if you run out of capital, lose your people, or lose your buyers. Just like the sea captain, you need a set of guiding principles and standards to hold your decisions up against to make better ones. You need to know how to gain the confidence of your investors, employees, vendors, and buyers.

We have identified 20 Guiding Principles for Success that, if applied, will mitigate your risks, and better prepare you for the unknown. They worked for us and they can work for you. Interested? Stay tuned as we explore them in the coming months. Like our audiences, you too may be saying, “I can’t wait to get back to my business and try the GPS out!”

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Prepare for the Unexpected! appeared first on The Barefoot Spirit.

Are there no financial consequences to damaging our health and quality of life, or the destruction of property if we burn more? Acting like gas is going to be cheap forever and control on pollution isn’t necessary is very short-term thinking at best. The consumer will be ultimately victimized.

What about the ultimate cost to auto buyers stuck with gas guzzlers?  What about the cost of lost auto industry jobs to more efficient imports? What about the cost of reduced American exports because they no longer meet the importer’s mileage standards? The auto industry is only citing cheap gas.

We guess the thinking goes that if gas is cheap, why would a consumer want to buy a high MPG vehicle? Consumers want bigger, more inefficient vehicles. So, lower the standards and give them what they want.

But the state governments may have something to  say about this. For instance, if California has stricter standards, what is the cost for the industry tooling up for two markets, one that has lower standards and one that has higher standards?

We think the auto industry is underestimating the consumer.

The consumer is beginning to realize that climate change related catastrophes are expensive and the costs are ultimately borne by them through taxation and increased insurance premiums. How many more superstorms, how many more super fires, how many more floods, droughts, vector-borne diseases will it take? How much more will the consumer pay for food, clothing, and everything consumable before they all connect the dots?

There is a good reason for regulations and standards. Any organized society has an obligation to protect its own citizens and future generations from their consumers’ own short-sighted buying patterns. The auto industry has not been held responsible for these associated costs – yet. And they can always point the finger at the consumer and say, “Well, that’s what they asked for!” And in the absence of environmental and health standards there is no long-term protection. Is it OK to hurt the environment permanently along with your health and property – and that of your children – for a temporary reduction in your fuel bill?  We think not.

How far do we take this laissez faire philosophy? Do we do away with warning labels and prohibitions on poisonous ingredients in our food so that industry doesn’t have to bear the cost of compliance? Let the buyer beware? “Oh, come on,” you may say, “That’s a bit of a stretch.” But we are allowing the growth of a technology we already know to be poisonous to the environment and ultimately to us? And before all those warning labels on food? People were buying and consuming products that were harmful to them.

Let’s not give up on what most of the rest of the world has committed to: Higher mileage standards. It is about saving our environment and all the long-term costs associated with losing it. We shouldn’t burn more gas because it’s cheap! We shouldn’t burn more gas, period. Not today and not tomorrow. Take a stance and do the thing that is right for the environment, your healthy, and future generations.

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Is High MPG a Selling Point Any More? appeared first on The Barefoot Spirit.

Any good gardener knows that skillful and timely pruning increases the strength and yield of your plant. Pruning can determine the direction of growth and suppress disease. But you have to do it!

Now is the time to take a good look at your business and sharpen those pruning shears.

When we were building the Barefoot Wine brand, we would sweat out the new year because that’s when the chain buyers and big box stores would cut out the “dead wood.” We knew that if our brand didn’t perform to their expectations, it could get discontinued. And well it should, since there was only so much shelf space. Buyers had to prune out the losers in order to make more room for the winners. Luckily we were rarely cut out of the sets because we were doing a lot of pruning of our own.

To read the complete article, please visit The Business Journals 

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post ​It’s a New Year, So Get Out Your Pruning Shears appeared first on The Barefoot Spirit.

When we were building the Barefoot Wine brand, we would sweat out the new year because that’s when the chain buyers and big box stores would cut out the “dead wood.” We knew that if our brand didn’t perform to their expectations, it could get discontinued. And well it should, since there was only so much shelf space. Buyers had to prune out the losers in order to make more room for the winners.  Luckily we were rarely cut out of the sets because we were doing a lot of pruning of our own!

Every year we looked at our business with a pruner’s eye. What was growing and what was dead wood? What needed more support and what needed to go to make way for new growth? Then we made some strategic pruning decisions.

We started with what was working well and realized that with more mind share, encouragement, and support it would work a whole lot better. We also realized that mind share was limited, as were funds and time dedicated to oversight. So, this additional energy, focus, and attention had to come from somewhere. Then we looked at what wasn’t working, what wasn’t producing, and what was sucking our energy, and that’s where we pruned!

This is not to say that investing in the future is a bad idea if it doesn’t pay off immediately. On the contrary. You need to invest to see a return and sometimes that investment can be a multi-year investment. But that’s where the real skill comes in. What investments in people and initiatives have gone on too long and need to be cut? How do you know when is the right time to say good-bye?

Gardeners love the winter because without the leaves, the trees and shrubs show their true structure. It’s easier to see where they are naturally headed and what adjustments are required to help them along. Many businesses slow down at New Years and sometimes for several months thereafter, giving you an opportunity to examine your structure without all the day-to-day demand clouding your view. Now is the time to get in there and make some strategic cuts that will take you in the direction you want to go. Now is the time to channel energy from losing propositions into winning ones.

When you analyze your business this winter, consider these two basic pruning principles that worked for us:

1. Protect. Decide who and what could improve with more help, guidance, or support. Ask yourself how they have demonstrated their potential to grow, and what they have brought into fruition. Discover the budding opportunities. Are they scalable? Decide if they are worth additional support.
2. Prune. What is not producing well? Who and what are sapping your resources, thus reducing your ability to support who and what are working? Make cuts in order to channel your limited amount of time, energy, money, and focus into those people and those initiatives you want to protect and nurture.

Annual pruning is really the reallocation of your resources. There will be new growth in the spring. So, get ready for it now and reap the rewards in a few months!

Here’s to a more efficient, and thereby more prosperous, New Year!

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post It’s New Year’s … So Get Out Your Pruning Shears appeared first on The Barefoot Spirit.

Of all the challenges aspiring, launch and growth-phase entrepreneurs face, the top has to be capital, or should we say the lack of it. The key to success of any business is simply making more money than it costs you to stay in business. So we decided to share how to reduce the need for capital in the first place.

Here are 7 tips that worked for us:

1. Discover Your Hidden Assets. What do you already bring to the table, and what can you find if you look with expectant eyes? Discover how you can repurpose something you have for something you need. Be resourceful. Solve problems creatively. We used a door for a desk and a laundry room for an office.

2. Identify and Work With Your Strategic Allies. Those who succeed if you succeed are your strategic allies. Learn how your products or service benefit your customers, suppliers, and the community. Find a small company you can work with that is poised to grow, and grow with them. We provided a small company called Trader Joe’s with a fun California product and together we spread across the country.

3. Use Your Suppliers and Buyers as Bankers. Treat your suppliers like business partners. Enter into long-term contracts so they can see a future with you. Keep them up to date on your progress, challenges and opportunities. Notify them in advance when you will be late on a payment, and show them how you will get current. Then ask for extended credit to expand your business and increase your purchases from them. We offered our buyers quantity discounts for cash.

4. Pay for Performance. Discover the metrics that demonstrate sales, growth, and profitability, then reward your people for achieving those goals. Keep the bonus period short term, such as every month or every quarter to keep the goals active and achievable in their minds. We matched our people’s 401K either 50%, 100%, or 150% based on quarterly achievement.

5. Outsource (Locally) Everything but Sales, Quality Control, and Accounting. Don’t invest in a ton of bricks and mortar or other overhead that require monthly payments whether you have sales or not. Try for just-in-time production and avoid holding large inventories. We outsourced production but held our producers to a set of quality specifications in a contract.

6. Reduce Turnover. The #1 hidden cost in any business is turnover. It can result in the loss of your company knowledge, supplier relationships, and even customers. The key is to hire, orient, train, and compensate properly. If you are paying your people right, the producers can’t afford to leave and the non-producers can’t afford to stay.

7. Reduce Your Cost of Advertising. Think about your customers as belonging to a community which is interested in more than your product. That community has needs and cause-based groups that work to satisfy those needs, such education, conservation, human rights, and support of the arts. By supporting community fundraisers and non-profits , we gave their members a social reason to buy our products.

These 7 tips can help anyone who runs a business, and we are happy to give back to our vets by sharing these lessons with them today, Veterans Day, 2015.

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post 7 Ways to Reduce Your Need for Capital appeared first on The Barefoot Spirit.

Sure, it’s a thin line between too much information and not providing enough to gain credibility. But there comes a time in every sales process when you have to show enough of your true self to be considered authentic and sincere by the purchasing party. Buyers want to identify at some level with the folks who are selling them. They want to know something that they have in common with the seller. It helps them justify the purchase. It helps them gain a feeling of trust.

Seasoned salespeople know from experience just how much is enough and how much is too much. First of all you have to be relatively confident with yourself and your product. Some people have issues with becoming personable at all. They think they can hide behind ceremonious form to avoid any kind of personal exposure. But their prospect may feel uncomfortable and ultimately see the form itself as tedious and they soon lose interest. This is what’s wrong with form letters and standard approaches.

Some people think that being mysterious will somehow lure others in and make them want to know more. We have found this approach tends to be read as insincere and somewhat devious. Prospects who don’t even know you now are faced with an added barrier to open communication – mystery. They wonder what your true motives are. We have found that they not only don’t want to discover the mystery, but they want to get away from those who try to use this or any other kind dramatic tactics.

The winning approach is to find something you have in common with your prospect before you ever go into your pitch. You’ll be glad you did because in the process you will learn how your prospect communicates and what their priorities are. This will help you immensely to craft a tailored approach for each of the unique prospects you meet.

We did business over the years with many Japanese colleagues and buyers. In their business culture, it is considered rude to pitch before some commonality has been established. It was not unusual for us to spend the first entire session talking about, you guessed it, the weather. After that it was sports or favorite movies.

Today, when we cold-call a prospect for a speaking event we like to set it up on Skype or some other video conferencing service so we can see each other. That increases the human touch right there. Then we usually ask them about the weather they are having and share ours. We also have learned enough about them and their company previously to comment favorably on some current event that effected them, like, “Congratulations on that recent merger,” or “You guys are really making a difference with your new program.”

Keep the conversation light to establish engagement, humor and trust. Remember their judgment about you takes place in the first 20 seconds and thereafter tends only to validate that initial impression. So take the time to establish friendly relations first. People want to cooperate with people they like. It’s as simple as that. So do they like you? What have you done to make yourself believable, likable, and friendly? We have found that initially folks must “buy” you before they will ever consider buying your product or service. First make friends; then make the sale!

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post Standing on Ceremony Can Lose the Sale appeared first on The Barefoot Spirit.